Mr. Presley was a prominent real estate developer as he built affordable housing in Capistrano Beach in the late 1960s. He died at the age of 93 and the LA Times has written a very interesting obituary.
UCLA's Don Shoup's work has everyone thinking about parking. At Ohio State University, the Deans have had a productive idea. They are cashing out the present discounted value of their parking lots and will accept a one time payment of roughly $400 million dollars in return for allowing private firms to run their parking lots for the next 40 years. Details are here. It would interest me to know the details. On an annual basis, what is the revenue flow from the parking lot? What interest rate was used to convert this flow into a NPV? What risks do the private firms face? Given that OSU is a growing university with more students who are able to afford vehicles, could demand decline? What off campus parking lots are available? How lazy are students and faculty in terms of walking a few blocks to an off campus spot? If the parking lot falls apart, who pays for repairs?
$1.25 million by Peter Bren will create advanced MBA course and Bren Fellows program
LOS ANGELES - Peter Bren, a nationally recognized leader in the real estate and investment advisory industries, has pledged a gift of $1.25 million to the UCLA Ziman Center for Real Estate, a joint center of UCLA Anderson School of Management and UCLA School of Law. The gift will be used to establish the Peter Bren Initiative for Real Estate Entrepreneurial Studies at UCLA. The Initiative will create an advanced case studies course focused on entrepreneurial real estate as a capstone to the MBA real estate concentration and the prestigious Bren Fellows program.
Reflecting Bren's unique entrepreneurial path, the gift will also establish the Bren Fellows program, providing financial support and specialized mentorship for the top graduate students in real estate across all disciplines at UCLA.
"Peter, through his many accomplishments, has always been a role model to the real estate world," said Judy Olian, Dean and John E. Anderson Chair of UCLA Anderson School of Management. "He is now creating a legacy that will benefit young entrepreneurs as they launch their careers and have the opportunity to learn first-hand from trail-blazing leaders."
"In multiple ways, Peter's gift is a real game-changer for the Ziman Center," said Stuart Gabriel, Director of the UCLA Ziman Center for Real Estate. "It provides a unique learning opportunity for some of the nation's brightest and most promising MBA students, it introduces them to very successful real estate entrepreneurs, and it helps solidify UCLA's position among the top university-based real estate programs in the world."
Written by Meghan McCoy, UCLA Anderson School of Management Class of 2012
Sebastian Edwards, UCLA Anderson’s Henry Ford Professor of International Economics, addressed an audience of prominent industry professionals at the UCLA Ziman Center’s Spring Board Meeting on April 12th. Professor Edwards provided an optimistic outlook for the U.S. economy, an in-depth analysis of Europe’s sovereign debt crisis, and discussed emerging Latin American markets such as Honduras. Specifically, he addressed the opportunity for private sector real estate investment in over 100,000 square kilometers of government-created special development regions known as “Charter Cities”. These protective enclaves in an otherwise extremely violent country aim to facilitate a safe haven for Hondurans to come together and put their skills to work with the expertise, financial resources and technology available to those in first world countries.
The meeting’s keynote speaker was Michael Milken of The Milken Institute who emphasized how both America’s changing demographics and further reliance on the Internet will shape the future of commercial real estate. The overriding theme of his talk centered on America’s historical tradition of rising to the challenge in the face of adversity, citing the recent recession. He addressed six areas in particular that provide opportunities for positive change including energy, housing, entitlements, education, health and immigration. Mr. Milken also spoke on the importance of better allocating the resources we have, including investing in human capital to compete in a global economy without increasing taxes and government spending.
In my six years in Los Angeles, I have noticed that attractiveness is a valued attribute in this town. Put simply, the people of LA look good. Perhaps it is because we are happy and fit but we also may recognize that there is an economic return to investing in looking good. This new real estate research paper bolsters this claim.
The Ziman Center's executive director is quoted in this piece in today's NY Times. Well done Tim!
The article focuses on the decision by California's governor to no longer fund community redevelopment agencies. These agencies use strategic subsidies to lure developers to take on risky center city redevelopment projects. The article has a subtle debate about the benefits and costs of such investments. From an economist's perspective, there has to be a positive "social multiplier" effect in order for this to be a good use of public funds. For example, suppose that by redeveloping an old run down movie theater and putting up new multifamily housing that crime falls in the neighborhood and that new businesses open nearby to cater to the new residents of the multifamily housing. This is an example of a "social multiplier" effect. In this case, if the developers build enough new housing there can be a localized "big push" that helps the area to revitalize. It would interest me if any academics have done analyses of past investments in California. Back in 2002, Jean Cummings, Denise DiPasquale and I wrote a pessimistic paper about such investments in Philadelphia.
Some real estate investors seek to buy a single property but why not be more ambitious and consider purchasing an entire town? One example is Buford, Wyoming.
"Billing itself as the nation’s smallest town, unincorporated Buford went to auction on Thursday after Mr. Sammons decided to move on after two decades of living here. The sale drew interest from people around the world who dreamed of owning a bucolic American town on the edge of the frontier.
The auction itself lasted less than 15 minutes before a mysterious Vietnamese man offered a winning bid of $900,000 for Buford, which has been around since the mid-1800s and was once a railroad town with a population of about 2,000."
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Disclaimer: The opinions expressed on the UCLA Real Estate Wire are those of the individual contributors and not of UCLA Ziman Center for Real Estate, UCLA Anderson School of Management, or UCLA School of Law.